NASHVILLE, TENN. (RFD NEWS) — Energy markets are sending conflicting signals to agriculture, with lower long-term fuel prices but continued short-term volatility in heating and fertilizer inputs.
The U.S. Energy Information Administration’s February Short-Term Energy Outlook (PDF Version) projects Brent crude oil averaging about $58 per barrel in 2026 and $53 in 2027 as global production continues to outpace demand and inventories build. Despite recent geopolitical disruptions, expanding output worldwide is expected to keep diesel and fuel costs generally softer over time.
Natural gas tells a different story in the near term. The Henry Hub price averaged $7.72 per MMBtu in January after winter weather tightened supplies. Storage levels are now projected to end winter about 8 percent lower than previously expected. Prices should moderate later as drilling increases, with averages near $4.30 this year and $4.40 in 2027.
U.S. natural gas production is forecast to grow 2 percent in 2026, while rising solar generation and modest coal use help meet expanding electricity demand from industry and data centers.
Lower propane prices are also expected as higher gas production boosts supply.
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
January 05, 2026 02:49 PM
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Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.
January 05, 2026 02:41 PM
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Shaun Haney, Host of
RealAg Radio on Rural Radio SiriusXM Channel 147, joined us with his 2026 cattle market outlook and insights on beef prices.
January 05, 2026 10:41 AM
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High ownership does not always translate into high output, underscoring the importance of structural differences in understanding state-level farm performance.
December 28, 2025 03:00 PM
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Record yields are cushioning production declines, but softer prices underscore the importance of cost control and market timing for vegetable growers.
December 28, 2025 08:00 AM
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Cuba remains a small but dependable, cash-only outlet for U.S. grain and food products.
December 27, 2025 03:00 PM
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Expanding cheese exports are strengthening U.S. milk demand and reinforcing global competitiveness.
December 27, 2025 07:00 AM
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Strong global demand and falling stocks suggest continued price volatility for U.S. coffee buyers despite record world production.
December 26, 2025 03:00 PM
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U.S. dairy producers remain the primary growth engine globally, while tightening supplies in Europe and New Zealand could support export demand for American dairy products.
December 26, 2025 12:00 PM
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